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A federal court judge threw out many of the claims brought against a group of banks, ruling that their alleged manipulation of the London Interbank Offered Rate did not violate antitrust laws. If the decision withstands appeals, it would eliminate the possibility of triple damages, greatly reducing banks' financial exposure. The judge did permit other aspects of the case, including possible breaches of commodities laws, to move forward.

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A U.S. federal court judge threw out many of the claims brought against a group of banks, ruling that their alleged manipulation of the London Interbank Offered Rate did not violate federal antitrust laws. If the decision withstands appeals, it would eliminate the possibility of triple damages, greatly reducing banks' financial exposure. The judge did permit other aspects of the case, including possible breaches of commodities laws, to move forward.

American International Group says New York Federal Reserve employee James Mahoney reversed his testimony on who holds the rights to take legal action against Bank of America over mortgage bonds underwritten by entities now owned by the bank and purchased by AIG. AIG disputes the bank's assertion that when AIG was rescued by the New York Fed, it also ceded all of its rights to legal action.

U.S. District Judge Richard Sullivan sided with the Securities and Exchange Commission in refusing to dismiss most charges against former Freddie Mac executives. The court rejected claims by Richard Syron, former CEO at Freddie Mac, and Patricia Cook, former chief business officer, that the availability of quantitative data should counteract any statements they may have made that misrepresented exposure to subprime mortgage loans. The court also permitted the case against another executive, Donald Bisenius, to continue.

JPMorgan Chase, Bank of America and other banks are being sued by local governments, community banks and customers regarding possible manipulation of the London Interbank Offered Rate. The defendants have asked U.S. District Judge Naomi Reice Buchwald to dismiss the cases, arguing there is no evidence they broke the law.

The European Central Bank plans to buy as much as €60 billion in covered bonds as well as offer banks cheap liquidity at longer maturities. The bank's surprising credit-easing measure boosted interest in riskier currencies. The ECB is striving to increase the region's money supply. The central bank also cut its main interest rate to 1%, and ECB President Jean-Claude Trichet did not rule out future reductions.